by Don Beman

The Canby City Council lowered the utility hookup fee from $10,000 to $1,200 each for two businesses that plan to locate on industrial development property near the airport.
The action took place during a special meeting last Monday night. Previously, the Council had set the utility hookup at $10,000 each against estimated actual costs of between $14,000 and $16,000.
The action came after Mayor Rich Blackwelder presented a list of towns in the area and their rates. The list said Madison charges $100 for water and nothing for sewer. Granite Falls charges $100 for water and $100 for sewer. Clear Lake charges $100 for water and $20 for sewer. Dawson charges $250 for water and $250 for sewer. Minneota charges $1,125 for water and sewer.
“The $10,000 doesn’t look right compared to those other towns,” said Jack Winter.
“Those towns are so far out of date,” responded Gene Eilers, contending the rates should be higher for all of the towns. When the vote was cast, Eilers was the only one who voted against lowering the fee.
Rick Bueltel said he felt Canby had to lower the rates in the face of those from the other communities. He said any business given a choice between $250 for Dawson and $10,000 for Canby would opt for Dawson.
“You’ll have a cornfield for 100 years” if the rates stay that high, Bueltel said.
Eilers said his problem with the reduction is that everyone else will end up paying the difference. He said the reserves in the water and sewer funds are not enough to cover the two hookups, which means the money either comes out of the city general fund or water and sewer rates have to go up.
“Somebody has to pay,” Eilers said.
Blackwelder said another way to look at it is need. He said both hookups would be businesses, neither of which would probably come close to a residential hookup. He said businesses just don’t use as much water generally as a residence. He also said the city taxes on a business are higher than for a residence, generally speaking, and that would make up the difference between the rate and the expenditures by the city.
Bob Sik said people had been telling him that the city has to make the rates lower to incoming businesses in order to attract them.
The Council also said the rate approved applies only to the industrial park.
In a second item on the agenda, the Council returned to the rate issue and voted to introduce an ordinance to make it clear that landowners are responsible for utility lines from the point they enter the property.
The Council had discussed the possibility of making the city responsible for all installation costs and maintenance of water and sewer lines right up to the house or building. That has not been the case, but the Council decided to clear up some vague language now on the books.